Crypto Academy Season 3 Week 1 Homework Post for (@allbert) - A world of Wallets and Exchanges

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Finally, the 3rd season courses started. I chose the first course of the season from one of the new professors @allbert. He gave detailed information about wallets and exchanges this week. Most people interested in cryptocurrencies have a wallet and an exchange account. Some people also have multiple exchange and wallet accounts. In some cases we need to use exchanges and in some cases we need to use wallets.

1- Explain differences between wallets and exchanges as well as mention which operations should be performed in an Exchange and which operations should be performed in a wallet (in terms of fees).

Exchanges and wallets are fundamentally very different from each other. Wallets are used to store and store cryptocurrencies, while exchanges are used for buying and selling cryptocurrencies.

Cryptocurrency wallets are completely in control of the user. Because the user also has private keys of cryptocurrencies. He can transfer his funds to another address at any time. In exchanges, the control is not entirely with the user. Because exchanges do not give users private keys of cryptocurrencies. We act according to the policies of the stock market.

Wallets are more reliable than exchanges. This is the main purpose of wallets. It is designed for users to securely store their funds. There are security problems in stock markets. In the past, exchanges have had a lot of security issues. Some exchange owners also escaped by stealing users' cryptocurrencies. For example, in my country, Turkey, the owner of the Thodex exchange stole the cryptocurrencies belonging to the users and fled the country.

Wallets are more difficult to use than stock exchanges. Therefore, users feel the need to store their funds on the exchange rather than in a wallet. When we forget the passwords for the wallets, we lose access to the wallet. When we forget the passwords of the exchanges, it is possible to obtain a new password and access the exchange again by sending the necessary documents to the exchanges.

In the stock market, users usually trade. Some exchanges also provide different services other than trading. For example Staking. It's like funding a liquidity pool and generating returns. Wallets allow us to protect our funds securely. Whales store their funds in hardware wallets and pay high fees to purchase these wallets. If you're a low-budget cryptocurrency enthusiast, you don't need a hardware wallet. Because the money you will pay to the hardware wallet will be more costly than your cryptocurrency fund.

I think it's great to be interested in cryptocurrencies. We need to take this interest further. We should buy cryptocurrencies within our means. He should buy cryptocurrencies at a low price. Next we need to transfer it to hardware wallets. Then, when the cryptocurrency price rises, it should transfer our funds from hardware wallets to exchanges. We must exchange our assets in the stock market. We should always use this method. You should buy cryptocurrencies at a low price on the stock market. It should transfer them to hardware wallets. When the cryptocurrency price rises, we must transfer it to the exchanges and exchange it on the exchanges. This is the safest and most logical method.

2- In your own words, Why You think people should have more than one exchange account?. Do you have an exchange account? and Why that specifically?

I think people who are interested in cryptocurrencies should have multiple exchange accounts. Because each stock market has different features. Some exchanges have low trading commissions. If you are a frequent trader, it will be in your best interest to prefer exchanges with low commissions. This way, you save money in the long run. In addition, some exchanges reward their users who trade frequently.

Some exchanges (like gate.io) start listing new cryptocurrencies. It is possible to buy cryptocurrencies at the cheapest price on these exchanges. After a while, it will be possible for us to sell at higher prices when they start to be listed on major exchanges. That's why we should have an account on exchanges that list cryptocurrencies as early as gate.io.

In some exchanges, the crypto transfer fee is either very low or free. For example, I had the opportunity to transfer all cryptocurrencies free of charge for a long time on the BtcTurk stock exchange in my country, Turkey. If you are going to transfer BTC in many exchanges, you have to pay an average of 0.0005 BTC transfer fee. If you're a regular cryptocurrency transfer person, you'll save well in the long run.

Arbitrage opportunity arises due to price differences in stock markets. If you are an investor with a medium or large budget, it is possible to make a good profit due to the price difference. Especially in periods when price fluctuations are very high, you can turn the price difference in the stock market into an advantage. To do this, you need to have an account on more than one exchange.

We know that exchanges have had security issues in the past. In case of potential security vulnerability, we could lose all our funds. In order not to be affected by this situation or to be less affected, we should divide our funds into 3 or 4 and distribute them to the exchanges. In this way, we reduce the risks in case of security problems.

I have an account on many cryptocurrency exchanges. Steem is the cryptocurrency that I am most interested in and I have an account on all exchanges that list Steem. Accessing decentralized exchanges is very easy. To take advantage of these exchanges, it is enough to have a wallet like Tronlink, Binance Chain, MetaMask.

Because Gate.io is the first exchange to list cryptocurrencies. I also have an account there. There are many opportunities at Poloniex. USDT transfers on the Tron network are free. Huobi rewards its users who trade frequently.

The exchange I use most often is Binance. The first reason is that it lists a lot of cryptocurrencies. It is possible to buy and sell many cryptocurrencies with a Binance account.

Since the volumes are very high on the Binance exchange, we can buy cryptocurrencies at their real values. We trade cryptocurrencies below or above their real value on exchanges with low volumes, and this is a big disadvantage for us.

Binance exchange is a proven exchange in the industry. It is one of the most reliable exchanges in the industry. A lot of investment has been made in security protection.

It can make leveraged transactions other than trading on the Binance exchange. You can evaluate your assets differently with staking-like methods and increase the number of your assets.

You can also trade at a discount by keeping BNB in your account on the Binance exchange.

3- What are better? Wallets or exchanges.?

Wallets and exchanges are fundamentally different from each other. While one of them is useful for trade, the other functions to store and store. The industry is developing gradually. Therefore, wallets and exchanges began to offer different services. Today, exchanges and wallets have started to provide similar services.

Some of the exchanges are starting to become decentralized. We had the opportunity to reliably conduct trade transactions on decentralized exchanges. The probability of a decentralized exchange being hacked is very low because we access the decentralized exchange through decentralized wallets.

There are still doubts about centralized exchanges. Decentralized exchanges give people confidence. People still use centralized exchanges because it is more practical to use decentralized exchanges. But in the coming years, the sector will move towards decentralized exchanges.

Hardware wallets differ from wallets such as TrusWallet, MetaMask. Especially wallets like Truswallet have quite remarkable features. Users can both store funds and trade in such wallets.

So in answer to this question I would like to say wallet. In wallets like Truswallet, we have the opportunity to do transactions that we would do on exchanges. There is more variety on exchanges, but we can also trade popular cryptocurrencies on wallets like trustwallet.

If you are interested in cryptocurrencies in the Tron network, I can recommend TronLink as a wallet.

4- Create an account in a wallet and in an exchange of your choice and show screenshots of the process

Now I will show you how to open an account in a wallet and an exchange.

I will use the Poloniex exchange to open an account on the exchange. I will use the Bince Chain wallet to open a wallet account. Opening an account with both is very practical.

Opening an account on the Poloniex exchange:
Opening an account on the Poloniex exchange is quite simple. We can open an account on the Poloniex exchange only by having an email address. Of course, in this case, I want you to know that we will be restricted from some features. For example, we can withdraw up to 10,000 USD per day.

• We log in to https://poloniex.com/. Click on "Sign up" in the top right.

• I told you that it is very easy to become a member of Poloniex. We write our email address in the first blank. Then we set a strong password. Password must be at least 8 characters. We confirm the password we set. If we have a reference code, we enter it in the next space. Then we click on the required place to pass the security step. We sign the contract where we accept the terms and conditions. In the last step, we click on the "Sign Up" tab.

• We need to log in to the email address and complete the confirmation process.

• In order to overcome some restrictions on the Poloniex exchange, it is necessary to complete the credentials and approve the documents.

Opening Binance Chain Wallet:

• It is enough to have a chrome browser to open an account on Binance Chain. First, we log into the Chrome Web store. We search for "Binance Chain".

• Click 'Add Chrome'.

• Click 'Create wallet'.

• Click 'Create seed expression'.

• Create a password of at least 8 characters and confirm this password.

• I copy the 12 word seed phrase and click continue.

• And as you can see, I have logged into the Binance Smart wallet.

Conclusion

We all pay close attention to cryptocurrencies. Anyone who is interested in cryptocurrencies should have sufficient knowledge of the stock market and wallet. He should understand the usage areas of exchanges and wallets and their differences from each other. Today, stock markets and wallets are changing day by day. We should follow the innovations closely.

In the cryptocurrency sector, steps are being taken to become decentralized. 5-10 years from now, mostly decentralized wallets, decentralized exchanges and decentralized applications will become more common.

We must shape all our moves and all our investments accordingly.

Cc:
@steemitblog
@allbert